As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the senior health, home health & hospice industry, including AdaptHealth (NASDAQ: AHCO) and its peers.
The senior health, home care, and hospice care industries provide essential services to aging populations and patients with chronic or terminal conditions. These companies benefit from stable, recurring revenue driven by relationships with patients and families that can extend many months or even years. However, the labor-intensive nature of the business makes it vulnerable to rising labor costs and staffing shortages, while profitability is constrained by reimbursement rates from Medicare, Medicaid, and private insurers. Looking ahead, the industry is positioned for tailwinds from an aging population, increasing chronic disease prevalence, and a growing preference for personalized in-home care. Advancements in remote monitoring and telehealth are expected to enhance efficiency and care delivery. However, headwinds such as labor shortages, wage inflation, and regulatory uncertainty around reimbursement could pose challenges. Investments in digitization and technology-driven care will be critical for long-term success.
The 7 senior health, home health & hospice stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 2%.
Thankfully, share prices of the companies have been resilient as they are up 9.2% on average since the latest earnings results.
AdaptHealth (NASDAQ: AHCO)
Founded in 2012, AdaptHealth Corp. (NASDAQ: AHCO) provides home medical equipment and related services, specializing in respiratory therapy, diabetes management supplies, mobility products.
AdaptHealth reported revenues of $856.6 million, flat year on year. This print exceeded analysts’ expectations by 3.3%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EPS estimates and full-year EBITDA guidance slightly topping analysts’ expectations.
“Over the course of the second half of 2024, we continued to make progress on our five areas of focus, which include our One Adapt initiative, accelerating the application of AI and automation, increasing our clinical relevance, delivering organic growth, and strengthening our balance sheet,” said Suzanne Foster, Chief Executive Officer of AdaptHealth.
AdaptHealth delivered the slowest revenue growth and weakest full-year guidance update of the whole group. The stock is up 23.7% since reporting and currently trades at $10.58.
Is now the time to buy AdaptHealth? Access our full analysis of the earnings results here, it’s free.
Best Q4: Option Care Health (NASDAQ: OPCH)
Founded in 1979, Option Care Health (NASDAQ: OPCH) delivers home and alternate site infusion therapy services, specializing in the administration of medications and care for patients with chronic and acute conditions.
Option Care Health reported revenues of $1.35 billion, up 19.7% year on year, outperforming analysts’ expectations by 4.9%. The business had an exceptional quarter with an impressive beat of analysts’ full-year EPS guidance estimates and a solid beat of analysts’ EPS estimates.
Option Care Health scored the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 6.2% since reporting. It currently trades at $34.69.
Is now the time to buy Option Care Health? Access our full analysis of the earnings results here, it’s free.
Brookdale (NYSE: BKD)
Founded in 1978, Brookdale Senior Living (NYSE: BKD) offers independent living, assisted living, Alzheimer's and dementia care, rehabilitation, and skilled nursing care.
Brookdale reported revenues of $780.9 million, up 3.5% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates.
Brookdale delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 12.8% since the results and currently trades at $5.99.
Read our full analysis of Brookdale’s results here.
BrightSpring Health Services (NASDAQ: BTSG)
Founded in 1974, BrightSpring Health Services (NASDAQ: BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services.
BrightSpring Health Services reported revenues of $3.05 billion, up 28.6% year on year. This number topped analysts’ expectations by 1.1%. Aside from that, it was a mixed quarter as it also produced a decent beat of analysts’ EPS estimates but full-year EBITDA guidance missing analysts’ expectations.
The stock is up 35.9% since reporting and currently trades at $24.99.
Read our full, actionable report on BrightSpring Health Services here, it’s free.
Chemed (NYSE: CHE)
Founded in 1970, Chemed (NYSE: CHE) provides hospice care and plumbing services through its subsidiaries VITAS Healthcare and Roto-Rooter, respectively, focusing on end-of-life care and residential and commercial plumbing solutions.
Chemed reported revenues of $640 million, up 9.2% year on year. This result surpassed analysts’ expectations by 0.6%. It was a satisfactory quarter as it also put up a narrow beat of analysts’ full-year EPS guidance estimates.
The stock is up 9.3% since reporting and currently trades at $597.52.
Read our full, actionable report on Chemed here, it’s free.
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